When you are starting your Financial journey, it is common that you will need help in specific advice areas rather than comprehensive Financial Planning. The most common thing that young adults (typically 30 years old and below) need help with include:
Creating a cashflow structure and process to be able to "pay yourself first" and consistently save money. Being younger, if you can get on top of your cashflow earlier, you can benefit enormously given the benefits of compounding returns on your savings over time. We have developed a free cashflow guide to assist young Aussies.
Once you are saving, it is common for young adults to want to know how they can start investing their money. We have created a video around investing, particularly relating to your investment timeframe to explore this in detail. In terms of executing, the Moneysmart website has useful information on how to buy and sell shares. These days, many online share brokers offer very low rates to buy shares. Shares do not need to be individual companies. Instead you can purchase diversified shares through Exchange Traded Fund (ETFs) options.
If you are lucky enough to save enough for a house deposit, it is also important to consider:
Working with a quality mortgage broker to navigate different government incentives and explain your serviceability and concepts such as Lenders Mortgage Insurance.
Working with a quality buyers advocate to purchase a property that is going to have good growth characteristics, rather than just purchasing any property you can afford.
Whilst your retirement may not be front of mind yet, your superannuation is important for a few reasons:
To make sure the fund is competitive in terms of cost and performance
The first home super saver scheme could be a tax effective way to save for your house deposit
You need to make sure you have adequate life insurances. This is especially true of ensuring you have income protection because in your 20's your biggest asset is quite literally your ability to earn income over the next 30 to 40 years.
If you need help with any of these aspects, please reach out!
Comments